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Thursday, Jan 27, 2005

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CPI (M) against consolidation

Our Bureau

Mangalore , Jan. 26

CPI (M) Polit Bureau Member Mr Sitaram Yechury has said that his party is opposed to the merger of banks.

It will give its opinion to the Government on matters related to banking sector consolidation on February 1.

Addressing presspersons here, he said, "We have been sounded out on some of the ideas that the Government has on reforms in banking sector." The party is opposed to the merger of banks on three counts.

Firstly, it does not want the branches of nationalised banks to be reduced because of mergers. What is required is greater reach of the banking system to the people, he said.

Secondly, the party does not agree to a process of retrenchment of the existing workforce in the name of mergers and rationalising the workforce.

Thirdly, the party wants the banking system to have a greater penetration into rural India. "We do not want that process to be reversed by such consolidation," he said. Banks should be more accessible to rural people.

"We are against any move to take over of Indian banks - private or public - by foreign banks through FDI," he said.

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